{
  "id": 3930405,
  "title": "U.S. Curbs China in Power Grid Supply Chain, Boosting Korean Makers",
  "url": "https://urgent.news/2026/08/28/u-s-curbs-china-in-power-grid-supply-chain-boosting-korean-makers",
  "topic": "business",
  "section": "Business",
  "published": "2026-08-28T09:40:16.000Z",
  "source": {
    "name": "BusinessKorea",
    "slug": "businesskorea",
    "url": "https://www.businesskorea.co.kr/news/articleView.html?idxno=275783"
  },
  "original_language": "en",
  "account": "The United States' Trump administration has introduced measures to prevent foreign power equipment that might jeopardize national security from being integrated into the nation's power grid. The focus now turns to the potential effects of this policy on Korean power equipment companies. While Chinese equipment's market share in the high-voltage U.S. power equipment sector is already limited, the prospect of Chinese companies entering the U.S. power transmission grid for new investments is anticipated to become even more challenging. The U.S. government is also promoting the procurement of domestically-made power infrastructure, which could enhance the competitiveness of Korean power equipment companies with local production bases when bidding for orders. U.S. President Donald Trump signed an executive order on August 26, targeting the use of foreign power equipment that poses security risks in order to safeguard the national power grid. This order applies to bulk power grids with 69kV (kilovolts) or higher, encompassing key power grid components like transformers, high-voltage circuit breakers, inverters, battery energy storage systems (BESS), and distributed control systems. The primary objective is to empower the U.S. Department of Energy to restrict transactions involving foreign firms deemed to pose a national security risk. Although the executive order does not specify a particular country, market analysts interpret it as an effective measure against Chinese power equipment. The U.S. government has been pursuing policies to reduce reliance on China in critical infrastructure supply chains. This move is also viewed as a strategy to reorganize the supply chain within the U.S. power grid and its allied sectors. The market is closely monitoring the potential indirect benefits that Korean power equipment companies may gain. Although Chinese companies' share in the U.S. high-voltage power equipment market is currently modest, the increased entry barrier for Chinese entities in the upcoming U.S. power transmission grid investments could have an impact. Notably, as the U.S. government emphasizes domestic production and supply chain resilience, analysts suggest that Korean companies with local production facilities could experience a relative boost in competitiveness. Korean companies have already secured substantial orders in the U.S. high-voltage power equipment market. LS Electric recently signed a supply contract with a large U.S. power company for $333.2 million worth of extra-high voltage transformers. The company is also expanding its orders for power distribution equipment, particularly in the context of AI data centers. In June, LS Electric secured a power distribution solution supply contract worth $230.9 million for a U.S. AI data center, with the order volume growing subsequently. To accommodate the increasing demand, LS Electric plans to invest $240 million in its North American production bases by 2030, including a $168 million investment in its Utah facility to triple production capacity and establish a local value chain. HD Hyundai Electric is also intensifying its efforts to secure a share in the U.S. high-voltage power equipment market. Following the acquisition of a $1.12 trillion contract to supply 765kV extra-high voltage transformers and reactors in the U.S., HD Hyundai Electric has signed a long-term supply contract worth up to $1.1212 trillion with a global technology giant. These products are set to be progressively delivered to data centers under construction across North America by 2028. Additionally, HD Hyundai Electric plans to invest approximately $200 million in expanding its transformer plant in Alabama, U.S. Hyosung Heavy Industries recently signed a $787 billion contract with a major U.S. power transmission grid operator to deliver 765kV extra-high voltage transformers and reactors. The firm, which operates an extra-high voltage transformer plant in Memphis, Tennessee, aims to augment its local production capacity by over 50% by 2028. The convergence of the restriction on new Chinese entrants and the rising emphasis on domestic production within the U.S. is expected to bolster the position of Korean companies, particularly those with pre-existing local production capacities. An industry official stated, \"While Chinese companies already hold a limited share in the North American market, there is ample opportunity for Korean companies to increase orders, given that future market entry for them has become increasingly arduous.\"",
  "summary": "As the U.S. Trump administration introduces measures to exclude foreign power equipment that could pose a threat to national security from its power grid, attention is focusing on the impact this will have on Korean power equipment companies. Although the market share of Chinese equipment in the U.S",
  "key_points": [
    "U.S. bans foreign power equipment in high-voltage grids to ensure national security.",
    "Korean power equipment firms may gain from restricted Chinese market entry.",
    "LS Electric secures $333.2M contract for extra-high voltage transformers."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}